As support for credits tied to shutting Asia’s coal plants early grows, a buyers alliance has been formed. Efforts to boost confidence in the new asset class have borne fruit and proponents are now looking at strengthening “the demand side of the equation” by end of the year, said Rockerfeller Foundation's climate lead Joseph Curtin.

The mechanism could also financially benefit the state utility company PT Perusahaan Listrik Negara (PLN) and attract private investments without burdening the state budget to scale renewable energy.

To build resilience to extreme weather, Malaysia’s government needs to quantify the costs of climate risks and embed these costs in its fiscal budget. More must be done to upgrade state machinery for climate action, said the World Bank.

While the public sector is expected to account for the bulk of adaptation funding, a new study by Temasek and BCG identifies six investable segments for private investors, from climate risk data providers to flood defense infrastructure.